Funds See More Hot Spots In Energy; Focus On Field Services; Despite oil price decline, further big profit growth expected at Halliburton.(MUTUAL FUNDS)(INVESTMENT TRENDS)

Byline: MURRAY COLEMAN

Signs are emerging that oil and gas prices have peaked.

But does that mean the nearly two-year run in energy stocks is ending? Several managers have reason to believe that stocks in several energy segments will continue higher.

"The market is skeptical that current high commodity prices are sustainable," said David Spika, investment strategist at Westwood Management. "Even if that's true, as long as oil remains above $40 a barrel, energy remains an attractive sector."

Crude oil futures are trading around $58 a barrel. That's down from $70 on Aug. 30. Natural gas futures have held up a bit better, having fallen to $12.59 per million British thermal units from their early-October peak of $15.60.

Longer term, traders are pricing crude oil stocks assuming $40 per barrel, and natural gas stocks assuming $5 per million Btu, says Spika.

"The quarter ended and a lot of the hot money chasing this sector left," he said. "We view that as a good development. Given the strong fundamentals of some of these companies, we're having a very difficult time finding a more attractively priced sector."